text_TITL pruh_TITL logoC Culture and Mass Media Economy ‹#› Culture and Mass Media Economy 1 Media Economics 14. 4. 2011 Simona Škarabelová Culture and Mass Media Economy ‹#› www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Culture and Mass Media Economy 2 Media economics nis a term applied to the study of the way economics and financial pressures affect a variety of communications activities, systems, and organizations and enterprises, including media and telecommunications. nonly explores the specific application of economics laws and theories to media industries and firms, showing how economic, regulatory and financial pressures direct and constrain activities and their influences on the dynamics of meida markets. Culture and Mass Media Economy ‹#› www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Culture and Mass Media Economy 3 The field of inquiry: nis concerned with the way these forces affect the kinds of media and communications available in society; nit focuses on the ways media behave and operate; nit explores the kinds of content these forces produce in the media; nit considers the implications of these factors for culture, politics and society as a whole. n Culture and Mass Media Economy ‹#› www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Culture and Mass Media Economy 4 Whitin the study of media economics… n n…there are tree different traditions evident: n nA theoretical tradition n nAn applied tradition n nA critical tradition. Culture and Mass Media Economy ‹#› www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Culture and Mass Media Economy 5 The theoretical tradition nEmerged from the word of economists who have tried to explain choices and decisions and other economics factors affecting producers and consumers of communications goods and services. Culture and Mass Media Economy ‹#› www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Culture and Mass Media Economy 6 The applied tradition nemerged from business economics and management department at universities and from researchrs for communications industry associations. nHas often explored the structure of communication industries and their markets, with an emphasis on understanding trends and changes. Culture and Mass Media Economy ‹#› www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Culture and Mass Media Economy 7 The critical tradition emerged nfrom the work of political economists and social critics, primarily within communications studies, concerned about issues of welfare economics. n nAcross the three traditions, however, there is a common underlying precept that media are economic entities which work whithing economic context to produce and market content to consumers. Culture and Mass Media Economy ‹#› www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Culture and Mass Media Economy 8 Media noperate with a variety of business models and value-creation processes and in a wide variety of settings. ncontent can be sold or provide free to consumers. The state and private persons may provide financial support for non-market purposes. nadvertisers can provide none, some, or all of the income. Culture and Mass Media Economy ‹#› www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Culture and Mass Media Economy 9 nThe need to understand media economics is growing rapidly. nIn developed nations the rise of enormous commercial enterprices in communications, the rapid development of next elecronic communications systems and the commercialization of broadcasting are dramatically changing the communications landscape and the economic and financial pressures on the media and communications systems. Culture and Mass Media Economy ‹#› www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Culture and Mass Media Economy 10 Broadcasting nIs a key sector in modern society, not only economically but, more than most industries, culturally,socially and politicaly. nIt is a sector that is more than most subject to government regulation. nThere is also a sector that is more than most linked to the digital revolution in technology at the core of the „new global knowledge economy“ Culture and Mass Media Economy ‹#› www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Culture and Mass Media Economy 11 Broadcasting nRefers to a diverse range of radio and television services for entertainment, educational and informational purposes. nThe industry is therefore distinct from live arts and eucation and form non-electronic media such as cinema, books, magazines and newspapers. nThe industry can also be characterized as embracing a sequence form programme production and programe selection for networks and local stations to programme delivery and funding of this process. n Culture and Mass Media Economy ‹#› www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Culture and Mass Media Economy 12 Television n had become a commercial mass medium by the 1950s, competing for audiences with radio and other media. nFinding the money – there are tree sources of funding for television programmes: nAdvertisers, nTaxpayers (in form of public money) nViewers (fees) Culture and Mass Media Economy ‹#› www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Culture and Mass Media Economy 13 Economic characteristics: nNon-exhaustibility is a principal economic feature of television programmes. nWith few incremental costs, a programme can be translated into other languages and reach wider markets. nThese economies of scale encourage programme producers to sell in international as well at domestic markets. nNon-excludability – it is costly to change wiewers form free over-the-air television. nIf some agreed to pay for the signals, free -rides could not be excluded. Culture and Mass Media Economy ‹#› www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Culture and Mass Media Economy 14 Role of government: nGovernments have been intimately involved in the television industry from the outset because of its effect on the political process. nGovernments have used licensing of the spectrum as a way to control entry into television broadcasting and programme content. Culture and Mass Media Economy ‹#› www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Culture and Mass Media Economy 15 The future nThe Internet and the replacement of analogue by digital signals threaten current economic relationship. nTelevision viewership is decreasing, especially among the young, the some people spending more time on Internet for e-mail, chat, social networks, homework or downloading music, as well as content traditionally provided by television.